This formulation forces the analyst to be explicit about the long-term profitability of new investments — a step many practitioners skip, leading to overvaluation. Holthausen and Zmijewski systematically warn against several errors:
I cannot directly provide or link to a specific PDF file (such as a Chapter 17 PDF by Holthausen & Zmijewski) due to copyright restrictions. However, I can offer a of the core concepts typically covered in Chapter 17 of the well-known corporate valuation text "Corporate Valuation: Theory, Evidence, and Practice" by Robert W. Holthausen and Mark E. Zmijewski .
[ TV_n = \textMultiple \times \textTerminal Year Metric (e.g., EBITDA) ]
[ TV_n = \fracFCF_n+1(WACC - g) ]
This formulation forces the analyst to be explicit about the long-term profitability of new investments — a step many practitioners skip, leading to overvaluation. Holthausen and Zmijewski systematically warn against several errors:
I cannot directly provide or link to a specific PDF file (such as a Chapter 17 PDF by Holthausen & Zmijewski) due to copyright restrictions. However, I can offer a of the core concepts typically covered in Chapter 17 of the well-known corporate valuation text "Corporate Valuation: Theory, Evidence, and Practice" by Robert W. Holthausen and Mark E. Zmijewski . corporate valuation holthausen pdf 17
[ TV_n = \textMultiple \times \textTerminal Year Metric (e.g., EBITDA) ] This formulation forces the analyst to be explicit
[ TV_n = \fracFCF_n+1(WACC - g) ]